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    Financial repercussions

    China Daily | Updated: 2013-06-26 06:51

    The stock market's drastic fall on Monday and Tuesday could be part of an already started cycle of global equity volatility following the US Federal Reserve's decision to taper off its stimulus program.

    The benchmark Shanghai Composite Index plunged to 1850 at one point on Tuesday, and the two-day 10 percent drop was the lowest intraday trading since early 2009.

    The stock markets of Japan and the United States have already witnessed major setbacks in the past month. While these falls were partly a normal correction after sustained gains in previous months, the dented investor confidence as a result of the Federal Reserve's decision to withdraw from its stimulus program was also a crucial factor.

    Financial repercussions

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